Tax Planning

Moving on up: Inheritance tax liabilities

Many middle-class professionals are paying an income tax rate of 60% as a result of a little-understood policy introduced by the last Labour government which affects more than 500,000 people, a leading economist has warned.

Plans to allow the tax authority to settle unpaid demands by taking money from people's bank accounts have been criticised by a group of MPs.

The 55% tax charge payable on pensions at death is too high and should be brought into line with the inheritance tax (IHT) regime, according to Standard Life.

IHT: Beware the lifetime gifting traps

Venture Capital Trusts (VCTs) have been hoarding investor cash after an error from HM Revenue and Customs left the vehicles afraid of issuing new shares.

HM Revenue and Customs (HMRC) has issued fresh guidance on its decision to tax unit rebates after receiving a number of queries from fund groups and platforms.

Steve Webb has called for an overhaul of tax relief on pension contributions that would see a flat 30% rate introduced and the lifetime allowance axed.

The Association of British Insurers (ABI) and Association of Professional Financial Advisers (APFA) have issued joint guidance for advisers and insurers on complying with new tax information requirements.

Mark Carney said UK interest rates could rise before next May's general election if there are continued sustainable improvements in the economy.